The Central Bank on Friday issued a statement indicating an ease-up in food inflation, the Monetary Policy Announcement for September 2023. The CB stated that while food prices are still rising, the increases are much less than a year ago. The report stated that: “Headline inflation in many countries has declined on account of lower food and energy commodity prices along with the easing of supply chain issues.” The June report attributed the easing of food inflation to “declining international food prices in tandem with easing local produce prices.”
The Central Bank report said: “Food inflation slowed to 5.6 percent while core inflation (which excludes food items) remained at 3.7 percent.” In contrast, the June report had indicated previous double-digit food-price inflation, which fell from 17.3 percent in December 2022, to 11.2 percent in April 2023, to 9.7 percent in May 2023, and is now reported at 4.7 percent.
Three past MPRs indicate food inflation at 10.3 percent in July 2022, 11.6 percent in September 2022, and 17.3 percent in January 2023. The June report attributed the easing of food inflation to “declining international food prices in tandem with easing local produce prices.” The next monetary policy report is due on December 29.